Canada’s media giants are in trouble.
It’s a fact we have known for some time. Plunging revenues amid increasing costs are a recipe for disaster in any business cycle – for Canada’s media giants, it spells big trouble.
But, like most distressing things in life, the gravity of this situation only truly hits home when a family member or friend loses a job.
Earlier this week, the economics of Newspapering forced the closure of The Guelph Mercury title. For those of us in the business it was a blow to the gut. For the City of Guelph it will prove a loss in the field of community discourse and public service.
Since Confederation the Mercury has served Guelph. One year shy of its 150th anniversary, Metroland shut it down. The surviving Newspaper in that market, The Guelph Tribune, is owned by the same company.
Elsewhere in the country Black Press shuttered the Nanaimo Daily News. In Halifax, the Chroncile Herald is locked in a bitter strike with its Newsroom after requesting pay concessions and increased work hours from its union.
Postmedia, owners of daily and community Newspapers across Canada, has seen its share price downgraded to penny-stocks. Towering debt payments (in American dollars) cause many to wonder about the future for that chain.
It is easily argued that the current condition of Canada’s daily Newspapers follows a trend that started taking place as far back as 2008 in the United States. Consolidation of titles, emergence of on-line News and social media created such a sense of confusion in the marketplace that bankruptcies and closures became common enough that the phrase emerged that Newspapers are “dying.”
Other media companies, like television and radio, made hay with that description. Call it karma, or simply the reality of changing times, but now television and radio are facing similar issues. With on-line streaming and an endless variety of channels, the consumer is now able to watch and listen to what they want, when they want – and in many cases it’s free. All the while advertisers query about diminished audiences and increasing prices.
We have sat through hundreds of hours of seminars state-side and here in Canada over the years. Like most business people we want to remain informed and hopefully use that information to remain successful.
While we don’t profess to have all the answers, the challenge for the media seems to come down to one thing: everyone wants something for nothing.
Although we tend not to engage in conspiracy theories, governments have been no help to our industry. With the graciousness of jackals, Newspapers have been stripped of much needed ad revenue in the face of efficiency and targeting messages.
The result, intended or not, is that Newspapers have less financial ability to fund strong investigative journalism – the kind of journalism that uncovers scandals like Ornge, the robocall debacle and cancelled gas plants to name a few. If the preceding caused an eye roll or a “who cares” under the breath, we can only suggest the government’s strategy, intended or not, is working. Canadians will have finally succumbed to being mindless sheep.
In fortress Wellington, we remain optimistic about Newspapers.
The county and local levels of government continue to advertise with regularity. Local businesses are happy offering wares and services to fellow residents.
That’s how this thing of ours works and we appreciate the support.
